Travail de recherche/Working paper
| Résumé : | This paper examines the relationship between manager educational background and hedge fund performance. In particular, we investigate whether managers with a quantitative academic background (the quants in financial jargon) outperform managers without a quantitative academic background (the non-quants). The paper looks at three categories of hedge funds (the equity market neutral funds, the long-short equity funds and the funds of hedge funds) and documents the existence of some differential ability among the quants in generating raw and risk-adjusted returns. In addition, this ability depends on the category to which the hedge fund belongs. More specifically, we find that the quants tend to earn higher raw and risk-adjusted returns in the case of both equity market neutral and long-short equity funds. However, the picture reverses when we consider the funds of hedge funds. These findings are robust to the different methods that are used to measure hedge fund risk-adjusted performance. |
